Japan Warns Against on Strong Yen

U.S. Dollar Trading (USD) was weak for most of the day before a sharp reversal in the US session saw the Greenback gaining across the board. Stock are remaining Buyout especially energy stocks as Oil trades above $91 a barrel. In US stocks, DJIA +20 points closing at 11575, S&P +1 points closing at 1258 and NASDAQ -4 points closing at 2661. Looking Ahead, Weekly Mortgage data released.

The Euro (EUR) The Euro had a volatile day rallying above 1.3200 in Asia before reversing sharply on news that the ECB had left some of its bond purchases unsterilized. EUR/GBP pulled back and so did EUR/CHF which moved below 1.2500. EUR/USD traded with a low of 1.3078 and a high of 1.3191 before closing at 1.3110. Looking ahead, M3 Money Growth forecast at 1.5% vs. 1.0% previously.

The Japanese Yen (JPY) USD/JPY fell sharply in Asia under Y82 before recovering in the US session but the crosses remained heavy with year lows for GBP/JPY under Y127. The Government has been giving more warnings in recent days as the major moves lower stating they will take action if necessary. Overall the USDJPY traded with a low of 81.80 and a high of 82.80 before closing the day around 82.40 in the New York session.       

The Sterling (GBP) gained against the Euro but was under pressure elsewhere with the major below 1.5400 and GBP/JPY moving to fresh year lows. Overall the GBP/USD traded with a low of 1.5343 and a high of 1.5514 before closing the day at 1.5360 in the New York session.

The Australian Dollar (AUD) broke above 1.0100 at the height of the USD weakness and avoided much of the USD strength in the US session. AUD/JPY is also outperforming holding above Y83 while traders support the high yielding commodity currency. Overall the AUD/USD traded with a low of 1.0053 and a high of 1.0154 before closing the US session at 1.0105.

Oil & Gold (XAU) broke out of its recent range to the topside above $1400 an ounce. Overall trading with a low of USD$1384 and high of USD $1407 before ending the New York session at USD$1405 an ounce. Oil's bullish mood continued pushing back above $91 a barrel. WTI Oil Closed +$0.40 at $91.30 a barrel.



TECHNICAL COMMENTARY

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.3055

1.3094

1.3110

1.3181

1.3359

USD/JPY

80.54

81.66

82.35

83.17

84.12

GBP/USD

1.5297

1.5345

1.5365

1.5494

1.5568

AUD/USD

0.9863

0.9986

1.0100

1.0174

1.0183

XAU/USD

1372.00

1382

1405

1408

1414

OIL/USD

89.00

90.00

91.30

92.50

95.00





Euro - 1.3110

Initial support at 1.3094 (Dec 28 low) followed by 1.3055 (Dec 23 low). Initial resistance is now located at 1.3181 (Dec 22 high) followed by 1.3359 (Dec 17 high)



Yen - 82.35

Initial support is located at 81.66 (Nov 2 high) followed by 80.54 (Nov 9 low). Initial resistance is now at 83.17 (Dec 24 high) followed by 84.12 (Dec 20 high).

Pound - 1.5365

Initial support at 1.5345 (Sep 8 Low) followed by 1.5297 (Sep 7 low). Initial resistance is now at 1.5494 (Dec 22 high) followed by 1.5568 (Dec 21 high).

Australian Dollar - 1.0100

Initial support at 0.9986 (Dec 21 low) followed by the 0.9863 (Dec 20 low). Initial resistance is now at 1.0174 (Nov 09 high) followed by 1.0183 (Nov 5 high).

Gold - 1405

Initial support at 1382 (Dec 28 low) followed by 1372 (Dec 23 low). Initial resistance is now at 1408 (Dec 14 high) followed by 1414 (76.4% retrace of 1431.25-1361.39).

Oil - 91.30

Initial support at 90.00 (Intraday Support) followed by 89.00 (Intraday Support). Initial resistance is now at 92.50 (Intraday Resistance) followed by 95.00 (Intraday Resistance).





Written by Anthony Darvall